By Greg Hazley
Next Fifteen Communications said it will implement new financial procedures at a cost of about £250K per year after discovering an "act of embezzlement" leading to a $2.8M (£1.8M) charge at its Bite Communications PR unit late last year.
The U.K.-based PR holding company of firms like Text 100 and M Booth worked with auditor BDO and investigative firm Kroll and said today it has wrapped that probe and will take an additional £300K charge to this year's financials.
"In concluding the investigation we believe there will be no further write-offs beyond those already outlined in the last annual report," said chairman Richard Eyre.
The FBI and San Francisco Police Dept. continue to probe the alleged fraud.
Next Fifteen, which said it still expects to meet financial targets for the year, in November delayed release of its financials, originally slated for Nov. 6.
The company said it will release interim results on April 23.
Eyre added that the group continues to "evolve" its business away from "a collection of traditional PR agencies" to a "group focused on social and digital marketing services." It expends to launch a new "insight business" in the spring. |